Buyer’s Guide: Why We Chose Phoenix for our 2nd Data Center

Quick take There are many reasons why we chose Phoenix as the strategic location for our second data center and our Phoenix Buyer’s Guide explores them all. Highlights include:

  • Data center experts like JLL and CBRE call Phoenix a top data center market for many reasons – we outline the top 5.
  • Arizona’s data center tax exemption can save millions for companies who choose to colocate in Phoenix.
  • At Aligned Data Centers’ Phoenix facility, with on-demand provisioning and cloud-inspired pricing, we keep resources and costs in sync with your evolving business needs.
  • Download our Phoenix Buyer’s Guide for more on what makes Phoenix one of the strongest data center markets and tech hubs in the United States.

In selecting a city for a data center site, basics like land, water, and electricity matter, of course. We consider power and water and fiber and safety from environmental hazards. But those are not the only factors that matter. We also care about criteria like tax incentives, which enable us to offer more services and better pricing to our customers, and how easy local officials and utilities are to work with. We chose Phoenix as the strategic location for our second data center because the city offers us the total package. Bottom line: Phoenix is a great place for data center colocation.

Download our Phoenix Buyer’s Guide

As the Greater Phoenix Economic Council (GPEC) explains it, “With an abundance of skilled talent, creative spaces and an inclusive culture, the region’s ecosystem supports emerging technology companies as they establish their operations and go to scale.”

The experts love Phoenix

JLL, the real estate services firm, says demand for Phoenix data center space comes in large part from West coast companies looking to move to a lower cost, less disaster-prone location without increasing latency significantly. The largest user base in Phoenix is the technology industry, though there is strong demand in the banking & financial services and retail & ecommerce industries as well .

“Companies view Phoenix as viable consideration for data center requirements because of the short latency to California while decreasing power and tax costs. ~JLL Data Center Outlook” – Click to Tweet

5 facts about the Phoenix data center market

The list of highlights making Phoenix such a good data center market is long. Our Top 5 include:

  1. Extremely low risk from natural disasters
  2. It’s a great place to do business
  3. The government wants you here
  4. Reliable, affordable power supply
  5. Connectivity is strong

Arizona’s 20-year tax exemption leads to significant savings

In Arizona, qualified data center owners, operators, and tenants are exempt from state, county and local Transaction Privilege Tax (TPT) and Use Tax (i.e., sales taxes) for purchases of data center equipment. Aligned Data Centers in Phoenix is qualified, so customers that contract with us for at least 500 kW per month for 2+ years will get the sales tax exemption – for 20 years.

How Aligned Data Centers offers dynamic IT

The financial and physical benefits of being located in Phoenix means that our customers benefit from our ability to we keep resources and costs in sync with your evolving business needs. We are able to help you adapt on demand, keeping capacity and costs aligned no matter how quickly requirements are changing. Our adaptive data center grows with you – size to your requirements today, provision capacity on demand as your needs evolve. Located in northwest Phoenix with easy access to three major freeways and minutes to Sky Harbor International Airport, our 550,000 square foot, 62 MW data center is situated on more than 51 acres, providing substantial room for expansion.

Learn more: Download our Phoenix Buyer’s Guide

Check out our Buyer’s Guide which is designed to elaborate on the many benefits of running mission critical operations in Phoenix, Arizona. And why Phoenix is a good strategic match for Aligned Data Centers second colocation facility.

On the Future of the Data Center – Uber’s Dean Nelson & Aligned’s Jakob Carnemark

On April 27, Aligned Data Centers opened the doors of our new Phoenix data center to a group of nearly 300 industry professionals from across the data center industry. Before hosting tours of the data center, Aligned CEO Jakob Carnemark and Dean Nelson, the head of Uber Compute, shared their thoughts on the future of the data center with Julie Albright, a USC professor whose work focuses on the social aspects of technology.

Read on for highlights from the panel discussion, with paraphrased comments from Jakob and Dean.

What are the challenges (and opportunities) associated with ‘greening’ the data center?

Jakob Carnemark, Founder and CEO of Aligned

The cloud players, especially, have made great strides in their use of renewable energy to power the data center. But the problem is that renewable energy is a dynamic supply, where data centers require stable base load energy. That creates stress on the grid and makes grid frequency very difficult to maintain, a problem exacerbated by increasingly dynamic IT loads. To help mitigate the issue, this data center [Aligned Data Centers Phoenix] can actually latch on to the grid to help keep the grid frequency at the right rate and disconnect from the grid when frequency falls too low. So imagine the reliability benefit of being able to predict when the grid is going to have an issue. It also allows for greater reliance on sustainable resources.

The other aspect of ‘greening’ the data center, in our approach, is dramatic reduction of water consumption.  Our data center can save up to 85% of the water consumed by a traditional data center of the same size (here’s why it matters). [Not to mention a dramatic reduction in energy consumption.]

Dean Nelson, Head of Uber Compute

Before we can think about ‘greening’ the data center, we have to think about availability. 99% of the world has no idea that we [data centers] exist. But they expect it to work. And when data centers go down, the impact has a domino effect. After availability, we can ask ‘Is it efficient?’ ‘Is it environmentally sustainable?’ We’re responsible for all three.

Infrastructure Masons (a global data center industry group) recently released a first iteration of the Data Center Performance Index (DCPI), which focuses on the actual performance of data centers from those three standpoints. The DCPI is designed to let data center consumers see what they’re getting with one provider versus another on those three metrics of availability, efficiency, and environmental sustainability.

“Data center builders and operators, we are infrastructure masons. We are the builders of the digital age.” – Click to Tweet

What is your prediction for the future of the data center?

Jakob Carnemark

If you look at the innovation happening right now – from Amazon using drones for delivery to Uber’s self-driving cars, and so many other examples of technological innovation – we haven’t even gotten started with the growth of the data center industry. Consider 8K video, a doubling of bandwidth, which alone will result in a huge increase in data center demand. We really are just at the beginning of the data center industry’s growth.

“If you look at the amount of growth that’s about to happen in data – and data centers – we’re just at the beginning.” – Click to Tweet

Dean Nelson

The rapid pace of innovation is going to continue to escalate. In the last two years alone we’ve generated more data than in the entire history of the world before that. The amount of data is insane. And looking to the next decade, we’re going to have a much, much larger increase in compute even than we’ve seen in the last years because of the trends that Jakob referenced.

The huge increase in compute is going to strain data centers and strain resources. But there is a tremendous opportunity to innovate the data center to reliably, efficiently, and sustainably support the future.